Sioux City, IA Hotels & Lodging: Transient Occupancy Tax (2026)

Iowa Code Chapter 423A establishes the state and local lodging excise tax framework. Iowa Code §423A.3 imposes a 5% state-level excise tax on the sales price of every rental of lodging for fewer than 90 consecutive days, administered by the Iowa Department of Revenue. Iowa Code §423A.4 then authorizes cities, counties, and land use districts to impose an additional local hotel/motel tax of up to 7%, in full-percentage-point increments, upon voter approval. Sioux City has adopted the maximum 7% local rate by voter referendum. The combined rate in Sioux City is 12%. Revenue from the local share is shared between the Sioux City general fund and tourism promotion through the Sioux City Regional Convention and Visitors Bureau, doing business as Explore Siouxland; fiscal-2024 collections exceeded $2.8 million, the highest on record. Iowa DOR collects both the state and local components on a single combined return through the GovConnectIowa portal and remits the local share to Sioux City monthly. Exemptions include rentals exceeding 90 consecutive days by the same guest (after day 90 only; first 90 days remain taxable per Iowa Code §423A.5 and HF 760, 2020), rentals to the federal government and certain Iowa state and political-subdivision employees on official business, and rentals to designated tax-exempt 501(c)(3) entities with proper documentation. A separate 1.65% voluntary lodging fee paid by participating Sioux City hotels funds incremental Explore Siouxland marketing but is not legally mandatory.